Shopify announced better-than-expected first-quarter results
E-commerce concern Shopify Inc (NYSE:SHOP) reported better-than-expected first-quarter results. What's more, the company is selling its logistics unit to Flexport, alongside parts of its fulfillment operation, and announced it will cut nearly 20% of its workforce. Last seen 25.1% higher to trade at $57.87, SHOP earlier hit its highest level in a year.
Options volume is surging thanks to the news, too. Already, 142,000 calls and 100,000 puts have crossed the tape, which is 11 times the intraday average volume. New positions are opening at the four most popular contracts, led by the weekly 5/5 60-strike call.
Analysts have yet to comment, though the brokerage bunch was split on the stock heading into today, which leaves room for an unwinding of pessimism. Of the 36 in coverage, 19 still rate Shopify stock a "hold" or worse. What's more, the 12-month consensus target price of $48.63 is an 16.7% discount to SHOP's current perch.
Pacing for its best single-day percentage gain ever, Shopify stock is 20.9% higher over the last 12 months. What's more, the equity sports a 69.2% year-to-date lead, and is now firmly above several short-term moving averages.